Decision taken to avoid loss to exchequer of G&M Deptt
*12% interest per annum to be charged for delay
Mohinder Verma
JAMMU, Feb 9: In order to avoid loss to the exchequer of the Geology and Mining Department, the Government has decided that now onwards the minor mineral block holders will pay from the royalty amount fixed by the Government towards District Mineral Foundation. Moreover, interest at the rate of 12% per annum will be charged in case of delay in making payment.
The necessary amendments in this regard have been made in the Jammu and Kashmir District Mineral Foundation (Composition, Contribution, Functioning, Funding and Trust) Rules, 2017 in exercise of the powers conferred by Section 9B, 15 and 15A of the Mines and Minerals (Development and Regulation) Act, 1957.
The amendments in the Rule 11 of the Rules of 2017 have been notified by the Mining Department and the same have come into effect immediately. The Rule 11 deals with payment of amount by the mineral concessionaires to the District Mineral Foundation.
The un-amended Sub-Rule 2 of Rule 11 read: “Out of the total amount of royalty realized from the holders of the Minor Mineral Concessions, 10% shall be deposited/paid towards the respective Foundation by the Geology and Mining Department”.
However, this provision was putting unnecessary financial burden on the exchequer of the Geology and Mining Department as it was contributing to the Foundation from its own revenue and objections in this regard were raised during the audit of the accounts of the department by the J&K Accountant General, official sources told EXCELSIOR.
The auditors had directed the Geology and Mining Department to take necessary corrective steps so that loss is avoided, sources further said. Accordingly, decision was taken to carry out necessary amendments in the Rules of 2017 and now with the approval of the Government the amendments have been notified.
The new Sub-Rule 2 read: “All holders of minor mineral concessions, shall, in addition to the royalty, pay to the respective Trust an amount equivalent to 30% of royalty, if the concession has not been granted through auction and 10% of royalty as fixed by the Government, if the concession has been granted through auction”.
“An amount equivalent to 30% of royalty will be paid by those who have been allotted blocks without e-auction while as 10% of the royalty as fixed by the Government will be paid by those who have obtained blocks through e-auction”, sources said.
Further, Sub-Rule 3 has been added in Rule 11 and now, notwithstanding anything to the contrary, simple interest at the rate of 12% shall be charged per annum on District Mineral Foundation payments after one month from the date it becomes due.
There is District Mineral Foundation in each and every district of the Union Territory of Jammu and Kashmir and it consists of District Magistrate, Assistant Commissioner Development, Chief Medical Officer, Superintending Engineer PWD, District Forest Officer, District Panchayat Officer, Assistant Labour Commissioner, District Social Welfare Officer and Chief Agriculture Officer.
As per the Rules, the Contribution Fund of the Trust may be utilized for undertaking activities under Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) for the interest and benefit of affected persons subject to such guidelines as may be issued by the Governing Body from time to time.
The fund is utilized for provision of amenities and infrastructure like water supply, sanitation, connectivity communications, irrigation, electricity supply, health care, education, housing etc; strengthening of social services like education, healthcare, social security, social safety, net skill upgradation training etc; afforestation and environmental improvement; projects for livelihood support, income generation and economic activities; improvement of institutional mechanism for delivery of public services; establishment and maintenance of District Mineral/Member
Secretary Office and allied infrastructure in the respective district and such other activities as may be specified by the Governing Body.
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